Returning car to UK because VRT & VAT too costly

DavidAdam

I bought a car in Northern Ireland but I have to pay VRT & VAT because of low mileage. This makes the car too costly. Can I take the car back to Northern Ireland or do I have to go ahead with the import given that the NCTS have already inspected the car and determined the VRT & VAT payable. Any help appreciated.

bazz26

Nothing stopping you selling it in the North.

DavidAdam

bazz26 wrote: »

Nothing stopping you selling it in the North.

Correct but do I still owe the VRT & VAT given I have had the vehicle inspected by NCTS. Does taking the vehicle back to Northern Ireland mean I no longer owe VRT & VAT.

bazz26

You only owe VRT and VAT if you are registering the car in the South. If you buy another car in the UK and VRT it here the previous car has no bearing on that once you sold it on.

Pkiernan

DavidAdam wrote: »

Correct but do I still owe the VRT & VAT given I have had the vehicle inspected by NCTS. Does taking the vehicle back to Northern Ireland mean I no longer owe VRT & VAT.

You need to talk to the VRT people, or Revenue.

W

TomOnBoard

Pkiernan wrote: »

You need to talk to the VRT people, or Revenue.

W

No you don't!

The OP has had a pre-registration check done by the NCT lads. He has decided not to register it in Ireland. He will be selling it on in UK. SO, if he's not actually registering it, why would be be paying a registration tax?

Just get it out of the jurisdiction asap..

bbbbb

Will the seller not have notified the DVLA that the vehicle has been exported?
https://www.gov.uk/taking-vehicles-out-of-uk

Henry Ford III

Big mistake OP. With a bit of care and prep. it would have been easily avoided too.

Hope you get your money back.

DavidAdam

Pkiernan wrote: »

You need to talk to the VRT people, or Revenue.

W

Tried to do this the VRT people say they don't know and go talk to Revenue.
Impossible to contact Revenue.

DavidAdam

TomOnBoard wrote: »

No you don't!

The OP has had a pre-registration check done by the NCT lads. He has decided not to register it in Ireland. He will be selling it on in UK. SO, if he's not actually registering it, why would be be paying a registration tax?

Just get it out of the jurisdiction asap..

But what about VAT. Can't get an answer to this one. Asked a former Revenue Inspector he was not 100% sure but thought if it went back to Northern Ireland no taxes were due.

TomOnBoard

DavidAdam wrote: »

But what about VAT. Can't get an answer to this one. Asked a former Revenue Inspector he was not 100% sure but thought if it went back to Northern Ireland no taxes were due.

Surely you should not have to pay VAT twice on the same product within the EU. If VAT is payable here, based on the age/mileage rules then it is recoverable from the UK authorities, albeit at their VAT rate rather than ours.

In any case, get the car out of the country.. Immediately!

bazz26

I think the OP's problem is that the UK dealer he bought the car from, sold it through the margin scheme so won't fill in the section of the form where UK VAT was originally paid.

The OP is stuck between a rock and a hard place where the only options are to either a. sell the car to someone he knows who get's it VRT'd when there is 6000km on the clock, then buy it back from them once VRT'd or b. the OP just sell the car on back in NI or mainland UK and take a hit on it.

road_high

Have you spoken to the dealer you bought it from? Would they be willing to take it back and swap it for something above the mileage threshold?

DavidAdam

TomOnBoard wrote: »

Surely you should not have to pay VAT twice on the same product within the EU. If VAT is payable here, based on the age/mileage rules then it is recoverable from the UK authorities, albeit at their VAT rate rather than ours.

In any case, get the car out of the country.. Immediately!

Do I not have 30 days from date of entry into state to get it back to Northern Ireland

DavidAdam

road_high wrote: »

Have you spoken to the dealer you bought it from? Would they be willing to take it back and swap it for something above the mileage threshold?

Does not have anything else suitable. Will take it back @ £3,000 hit

TomOnBoard

DavidAdam wrote: »

Do I not have 30 days from date of entry into state to get it back to Northern Ireland

That dealer is a proper bollix. Selling on margin and not facilitating the VAT repayment is pathetic. I wonder could a call to HM Revenue help. Probably not. Did you explain you were buying the car for importing to Irl? If so, surely they have a duty of care to conform with the law, part of which involves inter- EU import/exp[ort of cars? It certainly looks like you're being caught between a rock and a hard place... :-(

When you're intending to import and register a vehicle, you're supposed to complete registration within 30 days of first entry into the State or additional VRT may be charged. In addition, the VAT (if applicable) is supposed to be paid at the same time as the VRT.

Because of this bind you are in, you're no longer intending to register it here. Therefore, AFAIK, you're a Customs stop away from getting into bother for failing to register it, given that you are a resident here. Depending on the kindness of the Customs person who stopped you, you may be allowed to explain your way out of it, but if you encounter a problem one, they may get difficult. Again, as far as I know, Irish residents are not allowed to drive foreign resident cars here, unless they are also resident abroad.

I can't cite you the chapter & verse of the law on this; perhaps someone else can provide more/better information.

bazz26

Just for context, this is the OP's original thread:

https://www.boards.ie/vbulletin/showthread.php?t=2057931996

DavidAdam

TomOnBoard wrote: »

That dealer is a proper bollix. Selling on margin and not facilitating the VAT repayment is pathetic. I wonder could a call to HM Revenue help. Probably not. Did you explain you were buying the car for importing to Irl? If so, surely they have a duty of care to conform with the law, part of which involves inter- EU import/exp[ort of cars? It certainly looks like you're being caught between a rock and a hard place... :-(

When you're intending to import and register a vehicle, you're supposed to complete registration within 30 days of first entry into the State or additional VRT may be charged. In addition, the VAT (if applicable) is supposed to be paid at the same time as the VRT.

Because of this bind you are in, you're no longer intending to register it here. Therefore, AFAIK, you're a Customs stop away from getting into bother for failing to register it, given that you are a resident here. Depending on the kindness of the Customs person who stopped you, you may be allowed to explain your way out of it, but if you encounter a problem one, they may get difficult. Again, as far as I know, Irish residents are not allowed to drive foreign resident cars here, unless they are also resident abroad.

I can't cite you the chapter & verse of the law on this; perhaps someone else can provide more/better information.

I don't have it in the country 30 days yet. It will be going back tomorrow

aerofoiled

TomOnBoard wrote: »

That dealer is a proper bollix. Selling on margin and not facilitating the VAT repayment is pathetic.

A bit naive to think that any dealer would ruin a sale for themselves by telling the OP that the mileage of the car he's buying is too low, or getting into the complexities of their VAT arrangements.

As mentioned earlier, the situation could've very easily been avoided with a bit more research.

TomOnBoard

aerofoiled wrote: »

A bit naive to think that any dealer would ruin a sale for themselves by telling the OP that the mileage of the car he's buying is too low, or getting into the complexities of their VAT arrangements.

As mentioned earlier, the situation could've very easily been avoided with a bit more research.

I ful!y agree with your last point... The OP made a huge purchase with very inadequate research. I'm pretty sure he knows that very well by now.

However, he was dealing with a dealer who is by definition a professional in the car sales industry. IF he was told that the car was a purchase intended for import South of the Border, he ought to have known that by HMRC definition, he was selling a new car for export from the UK, and not a used one. The same rules around age and mileage that the OP learned (sadly too late) apply in Ireland also apply in the UK. Therefore the dealer mis-sold the car.

aerofoiled

TomOnBoard wrote: »

However, he was dealing with a dealer who is by definition a professional in the car sales industry. IF he was told that the car was a purchase intended for import South of the Border, he ought to have known that by HMRC definition, he was selling a new car for export from the UK, and not a used one. The same rules around age and mileage that the OP learned (sadly too late) apply in Ireland also apply in the UK. Therefore the dealer mis-sold the car.

Are you implying that some sort of 'duty of care' does or should exist in the motor trade? Regulated by whom? It's this kind of thinking that unfortunately lands buyers in the type of situation the OP is in.

TomOnBoard

aerofoiled wrote: »

Are you implying that some sort of 'duty of care' does or should exist in the motor trade? Regulated by whom? It's this kind of thinking that unfortunately lands buyers in the type of situation the OP is in.

Of course a duty of care exists in the motor trade. Of all possible trades, what other could do more damage to people or property if such a duty was not accepted and practised?? Maybe healthcare...

On the issue at hand, the dealer did not apply the law as contained in HMRC regulations, assuming the buyer made it clear that he intended to export it.

bazz26

To be fair lads, the OP bought the car from a UK dealer, it's not the UK dealer's job to tell the OP what rules apply to imports in another country. That's for the buyer to be aware of. It is however bad form that they want £3k to take the car back given how soon after it was bought. I know they are not a charity but £3k is a bit ott in my opinion.